Our opinion on the current state of OAS

Oasis (OAS) is a property company that manages various properties applying the principles of Islamic finance. It also manages institutional investments and retirement portfolios for governments, parastatals, collective investment schemes and private individuals. It has a number of wholly owned subsidiaries that engage in insurance, fund management and property management. In its results for the six months to 30th September 2023 the company reported total income up 31,7% and headline earnings per unit up 176%. The company's net asset value (NAV) increased by 5,7% to 2423c per unit. The company said, "...annualised total unitholder return of 10.3% relative to annualised inflation of 5.9% since inception, resulting in a real return of 4.4% per annum since inception. The Fund’s annualised total intrinsic value return is 11.3% per annum since inception and it is currently trading at a 22% discount to NAV taking into consideration the current HY2024 dividend of 53.2 cents per unit." The company appears to have a strong balance sheet with minimal debt. The enduring problem with this share from a private investor's perspective is that it is the closing share prices do not appear to reflect the value traded. The share price stayed the same for six months between May and December 2023 - despite the fact that on average R730 000 worth of the stock has been changing hands every day on average over the past 30 trading days. This seems to us to be some kind of manipulation. In 2024 the share has moved up rapidly - so perhaps it has potential, but its behaviour is not normal in our view.